The source of monopoly power for a firm with economies of scale occurs when:
a. an inventor gets the exclusive right to produce a product for 20 years.
b. government awards a firm exclusive right to supply a particular product.
c. a firm has exclusive control over a resource critical to production.
d. a single firm can supply market demand at a lower average cost per unit than two or more firms each producing less.
d
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When actual output equals potential output and the inflation rate is equal to the expected rate of inflation, the economy is said to be in ________ equilibrium.
A. recessionary B. long-run C. expansionary D. short-run
What is the theory of Second Best?
What will be an ideal response?
The total number of governments in the United States has increased since 1972
a. True b. False
If a firm is a price taker, the demand curve faced by the firm is:
A. horizontal. B. vertical. C. downward sloping. D. upward sloping.